InvestorQ : How is the lockdown for COVID-19 impacting the NBFCs like Bajaj Finance and other smaller names?
Dhwani Mehta made post

How is the lockdown for COVID-19 impacting the NBFCs like Bajaj Finance and other smaller names?

Answer
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Tejas Savla answered.
4 months ago


The impact of COVID-19 on stock market and some solid NBFC stocks like Bajaj Finance, Bajaj Finserv, etc. might continue for a short term of few months, till the world is free from the threat of Coronavirus. However, long term investors can use this phase to invest in such stocks in SIP manner and build a strong portfolio for the next 8-10 years from a wealth creation perspective. Remember, pandemics like COVID-19 are very rare and it is very rare to see the markets at such low levels. Make the most of it while it lasts and you may not even remember these levels after 8-10 years.


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Khushi Patel answered.
4 months ago


You know there is trouble when the most profitable and valuable NBFCs in India is facing loss of customers. Bajaj Finance has begun to feel the heat of the lockdown over the last two weeks as it has lost nearly 350,000 customers since the lockdown began. Its assets under management (AUM) have shrunk by Rs.4750 crore during this period. This led to the AUM growth in the March quarter getting stifled to a mere 27% as against a healthy 37% on an average in the previous quarters. This could have larger valuation implications for Bajaj Finance and other consumer finance companies for the first quarter of FY21. The stock has already corrected by more than 65% in the last 45 days.